When the Value of a Currency Is Determined ________,The Exchange

question 73

Multiple Choice

When the value of a currency is determined ________,the exchange rate system is defined as a floating exchange rate system.

• A)only by supply and demand
• B)by its issuing government
• C)mostly by supply and demand,but with occasional government intervention
• D)by its issuing government,with occasional readjustments in value

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Definitions:

Annual Profit

The net income a company or individual earns in a fiscal year after all expenses are subtracted from total revenues.

Cartels

Organizations of independent businesses formed to coordinate the production, pricing, and marketing of goods to monopolize the market and restrict competition.

Incentive to Deviate

A situation where a party has a profitable reason to diverge from a prescribed strategy or agreement.

Monopoly Output

The quantity of goods or services produced by a monopolist, characterized by the lack of competition and the ability to control prices.